I think it’s safe to say the COVID-19 pandemic has touched every single sector of our economy and society. This is certainly true in regard to the real estate market. Just take a look at the April statistics compiled from REColorado, the largest Multiple Listing Service (MLS) in Colorado. Here are the highlights in this market update, along with my perspective on the current state of the industry.
April 2020 Stats: Denver Metro Real Estate Market
- Closed home sales dropped 24.34% from the prior month and 30.78% from the same period last year.
- Although the average and median sales prices were both down in April compared to March, both are still higher than the same time last year.
- Despite the lower number of closings and even though inventory jumped 18.68% from March, there are still fewer homes on the market than at this time last year. Total active inventory stood at 6,855 in April 2020 vs. 7,012 in April 2019 (not shown on chart).
Perspective on the Market
Overall the market for homes listed under $550,000 is still moving very quickly and properties are taking on average less time to sell than ever before.
As far as real estate activities go, at the time of publication we still cannot hold open houses or allow overlapping showings. Personally, I am supplying hand sanitizer, gloves, and shoe booties for clients to use in our private showings. I am also instructing my sellers to leave all lights turned on and all doors open to minimize prospective buyers’ contact with the house.
Mortgage rates are still super low, so if your rate is 4.25% or higher, you may want to look into refinancing.
If you’ve been thinking about buying, lower interest rates mean more buying power. It’s important to know that the guidelines for new loans have become stricter. This makes good credit scores and solid employment a must.
I believe we will see a higher-than-normal jump in the number of listings in May. Some will come from the people who pulled their homes off the market in March and sat tight through April. This higher inventory will make smart pricing and marketing even more important for sellers.
Ready to Buy? Ready to Sell? Let’s Talk!
I would be honored to assist you in reaching your real estate goals. Give me a call at 303-204-6494. My experience and recommendations can save you time, money, and stress.